Credit growth was broad-based across sectors, led by services at 19.0% and supported by personal loans, agriculture, and industry, signaling resilience in the domestic economy.

The robust credit expansion points to a resilient economy that is fueling business expansion, fixed-asset investment, and durable consumption, while lifting industrial activity and employment.

Services credit rose 19.0% year-on-year, accounting for about 28% of total credit, driven by demand from non-banking financial companies, trade, and commercial real estate, up from 12.0% a year earlier.

India remains among the fastest-growing major economies with a well-capitalised banking sector and low stressed-asset levels, underscoring economic resilience amid global uncertainty.

Government-led financial inclusion initiatives and regulatory reforms contributed to broad-based credit growth even as global uncertainties persisted.

A low-interest-rate environment and sustained government capex have sparked a crowding-in effect, encouraging private investment and capacity expansion.

The outlook points to sustained credit momentum driven by stronger investment cycles, robust consumption, and a well-positioned banking system, supporting an investment-led, inclusive growth path.

The banking sector remains healthy with well-capitalised balance sheets, low NPAs, and sustained profitability, underpinning higher credit growth and stability.

Agriculture and allied credit grew 15.7% in FY2025-26, reflecting sustained rural demand and formalisation of farm credit.

Overall bank credit grew 15.9% in FY2025-26, with outstanding credit reaching Rs 212.9 lakh crore as of March 2026, about Rs 29.2 lakh crore higher than the previous year.

Personal loans, which make up about a third of total credit, rose 16.2% in FY2025-26, with housing, vehicle, and gold loans showing strong demand.

Efforts to formalise and democratise access to credit have contributed to the broad-based lending expansion across the economy.